Arsenal today announced pre-tax profits of £11.1million, despite a record transfer spend during 2014.

The latest financial figures for the six-month period ending November 2014, reveal a £12.6m increase in turnover to £148.5m and a £93.7m investment in the squad last summer.

Arsenal recorded an overall profit before tax of £11.1 million.

The accounts also show a cash reserve totalling £138.8m, although that figure does not take into account the January signings of Gabriel Paulista or Krystian Bielik.

A summary of the main results are below:

Turnover from football increased to £148.5 million (2013 – £135.9 million) with strong growth in commercial activity driven by the new kit partnership with PUMA.

Significant investment in the squad with a record level of expenditure on player acquisitions (£93.7 million) which has in turn resulted in a higher amortisation and higher wage costs in the profit and loss account.

Profit on sale of player registrations amounted to £26.7 million which was significantly higher than the prior period comparative (2013 – £6.1 million).

Minimal activity during this half year in the Property side of the Group.

Group recorded an overall profit before tax of £11.1 million (2013 – loss of £2.2 million).

The Group has no short-term debt and its cash reserves, excluding the balances designated as debt service reserves, amounted £138.8 million (2013 – £120.6 million).

The liabilities for player acquisitions are in part payable in instalments and transfer creditors rose to £82.8 million (2013 – £37.9 million).

Overall result for the year expected to be fully compliant with all of the requirements of both the Premier League and UEFA financial regulatory regimes.

Sir Chips Keswick said in a statement published on Arsenal.com: “Our commitment to investment in the squad was evidenced by a record level of expenditure on players joining during the summer with the acquisitions of Calum Chambers, Mathieu Debuchy, David Ospina, Alexis Sanchez and Danny Welbeck.

“The recent acquisition of defender Gabriel from Villarreal will take our total transfer expenditure for the year to well in excess of £100 million. This substantial investment has inevitably led to increased amortisation and wage costs in our profit and loss account but, crucially, this remains at a level which is consistent with our principle of affordability and which is financially sustainable in accordance with the requirements of the applicable regulatory regimes.”

Keswick highlighted the emergence of Francis Coquelin and Hector Bellerin as regulars in the first team, and a commitment to develpoping young players through the academy system.

“It has been particularly rewarding to see the recent emergence into the first team squad of Francis Coquelin and Hector Bellerin,” Keswick wrote. “Francis is a great example to everyone on what can happen if you are patient and dedicated. He thoroughly deserves all the accolades currently heading in his direction. Hector is another young player who has shown tremendous application and effort and he is growing in confidence game by game.

“The progress of both players is testimony to the philosophy of the Board, our majority owner Stan Kroenke and manager Arsène Wenger. In an era when many are seeking short-term results and instant action, we remain true to our principles of investing in the future by continuing to sign outstanding international talent while developing our own.”

There was a sting in the tail for Arsene Wenger and the players at the end of the statement on the need for performances to be more consistent on the pitch. This may have been added after the Monaco match!

Keswick said: “On the field, the team has produced some strong results and the squad is looking fit and better balanced. However, we need to find our best form on a more consistent basis as we approach, what I hope will be, an exciting end to the season.”